UNDERSTANDING US STOCK EXCHANGE
You are really blessed if you have someone who advises you to go into stock, and it gets bigger if they lead you to the US stock exchange for investment. It beats my imagination that many people are yet to understand the long-term economic effect of buying shares.
Investing in shares saves one on a rainy day, as all the stocks you gathered when you had an abundance of cash will pay you back in hard coins. As interesting as stock buying is, experts, warn that before you think of going into any investment, you need to seek the knowledge of an expert in this area.
Their years of experience and training will help to guide you properly than putting your money out there and start wallowing in confusion.
In the U.S today, there are billionaires who made it big through stock investment. The list is too long, the key thing is, that we learn from their ability to take risks and the outcome of risk-taking.
Surprisingly, buying stock from a known company through a trusted broker makes life easier in the long run. Notwithstanding the giant gains attached to buying shares, there are risks in this line of business. Every business has its bad side, having this in mind, makes a whole lot of sense.
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Benefits of Stock Investment
Investing in stocks comes with huge gains some of them include but are not limited to;
- Preferred shares: the preferred shares are one of the gains found in stock buying, its benefits are numerous and they include; higher income, reliable income stream, and variety. These inform why investors keep investing in stock; there are lots of gains to be made. These benefits are general, which implies that as long as the company is recognized and you are working with a trusted broker, you stand to gain all those.
- Common shares: this is the most common type of shares one can gain when investing in the stock market. With this, you stand to gain; liquidity, dividend income, advantageous tax treatment, capital growth, and voting privileges.
Differences Between Common and Preferred Shares
|Common shares||Preferred shares|
|1||You have voting rights||There are no voting rights, here|
|2||In bankruptcy, there is no priority status||You have priority status|
|3||You may likely gain dividends||you have higher dividends|
|4||You have a generally higher risk||Generally, the is low risk|
|5||Typically for capital gains||Typically for income gains|
|6||Expected higher returns||Expected low returns|
Major US Stock Exchanges
Selling stocks to shareholders does not only help the company make gains, it helps them to gain more popularity. The net worth of companies keep growing when shares are sold, the internet has made everything easier for brokers, investor, and company owners.
Now transactions are easily done without issues, and investors can now monitor the progress of their investments, track how things are done, and the rest.
- New York Stock Exchange (NYSE): thinking of buying stocks in the U.S? NYSE should be your number one option. Worldwide, the exchange system has gained lots of trust due to the number of years it has been in operation. It was founded in 1790 and since then has maintained good operation and yielded top profits, which keeps it in business till today. it was amalgamated with the European stock exchange to form what is today known as Euronext in the year 2017. Companies that wish to be listed on the NYSE must have up to 1.1 million shares outstanding and about 400 shareholders.
- National Association of Securities Dealers Automated Quotation System (NASDAQS): this is regarded as the biggest electronic screen-based market in the world. It was founded in 1971 by the National Association of Securities Dealers (NASD), with the intention to provide lower listing fees than what NYSE provides.
- Miami Stock Exchange MS4X)
- Chicago Board of Trade (CBOT)
- National Stock Exchange (NSX)
- Philadelphia Stock Exchange (PHLX)
- Cboe Options Exchange (Cboe)
- International Securities Exchange (ISE)
- Chicago Stock Exchange (CHX)
- Chicago Mercantile Exchange (CME)